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tv   Real Money With Ali Velshi  Al Jazeera  July 1, 2014 2:00am-3:01am EDT

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seeing. some migrant children have p.t.s.d. from their journey, as they saw other crosses killed along the way. you can find us on twitter, google+ for facebook. see you next time. it's halftime for 2014, a great year scoc so far. we'll look at what the next six months could mean for the rest of the year. and we'll tell you who is effected by a student loan rate change. and a new airline with an old name takes flight. we'll look at how it can save you money when you fly. i'm jen rogers in for ali money." ♪
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this is "real money," and you are the most important part of the show. tell me what is on your mind by tweeting and facebook. it is the halfway point of the year, and that means it's time to take stock of your investments. the year may have started slowly, but when all is said and done, it has been a good six months for more than half f all americans out there who invest in the stock market. the s&p 500 index, is up 6.1% so far this year. that's less than half the gains seen in the first half of 2013, but it's still a healthy return over all. the tech-heavy nasdaq is up 5.5% this year, while the dow industrial is only up by 1.5%.
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but it's not only the stock market that's doing well. u.s. corporate bonds are up almost 4%. ten-year u.s. treasuries are up 6.1%. commodities up with gold in particular up a whopping 10%. so financial markets across the globe have rallied in the first half of 2014, and that's a feet unseen for more than 20 years. and it comes despite uneven growth here in the u.s. and political crises in the ukraine and middle east that threaten to disrupt energy markets. investors are still pouring than money into financial markets. but before you get too excited, over the long weekend a group of leading central bankers sounded a warning. they today the big returns are disconnected with the still shaky global economy. and that warned that investors
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may not be prepared for rising rates on the horizon. mom and pop investors and mutual funds pulled a $1.5 billion out of the stock market this month, six mopths into the year, you need to revisit your portfolio statements and consider reallocating your holdings whether you believe the now five-year bull run will keep running, or redirection is coming soon. let's bring in the equity chief investment officer. thank you so much for coming, erin. >> thank you. >> you heard all of those green arrows there. but there is some skepticism. what camp are you in? >> like you said there is a disconnect out there.
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the gdp was almost a negative 7% for the first quarter and even when we're looking for the first half, we're looking up maybe 1% for the first half, and s&p is up 6%. so that has to make any investor a little concerned. we're hoping and we're expecting that earnings should catch up, and we're looking for about 10% growth in earnings for the second half of the year, getting us to about up 10% in the stock market and bringing those two a little more in line. >> what is the risk to that, because obviously this big gdp headline grabs a lot of attention. but what will you be watching coming up? >> the big thing i'm watching is housing. housing affects a brood part of the u.s. economy. it brings real wealth to the majority of americans. so now housing starts and housing prices are very important. it also helps with mobility when
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you have your housing in the money. basically. >> if you can move. >> that's right. second thing is consumer confidence. are americans feeling better? now we have seen better payroll jobs. slightly better, about 8% better than last year. >> but still better. >> but still better. and we're in an interesting point with consumer confidence. when confidence goes up, that tends to indicate more spending. >> the [ inaudible ] number was good. >> it was. it is the highest number we have seen since 2008. but historically it was still the middle of the road. when we seay above 85, that's when we really see the pickup in spending. >> the consumer spending discretionary spending was not
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one of the good sectors. do you think it has to come and be present for the second half to show a good return? >> we definite -- consumer discretionary is always two-thirds of the u.s. economy, consumer spending. there are a couple two things that have been unique this year. one, obviously the winter that depressed some spending. but another thing that we're seeing is there is continued pricing pressure. everyone checks on the web for the best prices. even very affluent customers will check prices. so companies are really struggle to compete with your amazons ebays and so on. >> now you talked about the winter, what about the summer. the summer is not guaranteed to the best weather either. >> this is something that wall street really doesn't talk about that much, but it's something we
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do need to discuss and take a stance. global warming is creating these weather extremes. this is very much part of global warming, is these extremely hot summers, or in this case an extremely warm winter. so this makes it very hard for companies to predict if you suddenly have a hurricane sandy coming through. so this is something we should continue seeing more flexibility. >> well, erin thank you so much for coming in this. >> thank you. a former corporate boss has been tapped to take on what could be his biggest challenge ever. turning around the veteran's administration. more on bob mcdonald coming up. plus the new chapter in the gm recall saga. a compensation plan for victims. that story and more continues keep it here.
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>> al jazeera america takes you inside battle torn iraq. as those on all sides of the violence flee for their lives. >> we're seeing family after family just hoping for an escape. a first hand look at the people, politics, and the future of iraq. >> the united states will continue to increase our support to iraqi security forces. >> don't miss america tonight exclusive reports >> don't miss america tonight exclusive reports fron [ grunting ] i'm taking off, but, uh, don't worry. i'm gonna leave the tv on for you. and if anything happens, don't forget about the new xfinity my account app. you can troubleshoot technical issues here. if you make an appointment, you can check out the status here. you can pay the bill, too. but don't worry about that right now. okay. how do i look? ♪ thanks. [ male announcer ] troubleshoot, manage appointments, and bill pay from your phone. introducing the xfinity my account app.
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>> this is some of the best driving i've every done, even though i can't see. >> tech know. >> we're here in the vortex. only on al jazeera america. >> president obama has decided to go it alone on immigration reform. he wants officials to give him options by the end of the summer, so we can take um immigration reform on his own. after eric cantor's primary surprise? >> it's not a surprise that republicans aren't going to be pushing immigration reform. it was year ago this week, that they passed a bill, and there's some indication, you indicated eric cantor and northwest the leadership who saw that the
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growing demographics of voters was something the republican party could no longer turn its back on and hope to win national elections. eric cantor paid the price for that, but john boehner's comment last week, drove president obama into the rose garden today. he said he is going to impose executive actions where he can at least peace meal an immigration reform. and he is spending border guards to the border to deal with the flood of children coming into the country. he is spending money on immigration lawyers asylum lawyers, as well as direct aid to many of these children. many of whom are housed in makeshift housing around the
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country. so it's a terrible situation. the president sees republicans are in a corner here, and he will be pressing them to act on immigration reform even though clearly they don't want to do that this year. >> mike, the political contacts, what are the republicans saying now? >> first of all, an earlier executive order that president obama signed about the so-called dreamers, making it easy for those who came to this country some years ago, and came here and grew up here to remain in this country. they are not going to be enforcing portation hearings -- deportation hearings against those people, and those in central america are spreading false rumors to these families, and encouraging these people to make these journeys. the back and forth continues.
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in the meantime, 52,000 unaccompanied children at least have tried to get into this country across the border. >> quite a number, mike viqueira for us at the white house. thank you very much. >> president obama nominated bob mcdonald to take over the troubled department of veteran's affairs today. the selection of a businessman comes amid calls for radical change at an agency on fire for mismanagement. long wait times and even reports of veterans who died waiting for appointments. the question is whether m cdonald is the right man for the job. >> thank you so much, bob, for making on this assignment. >> thank you mr. president, thank you so much. >> for some the head of procter & gamble seems an unorthodox pick to head the department of veteran's affairs. the 61-year-old does have a
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military background. >> i went to west point to be an officer in the army to try to help free people living in non-free societies. i became an infantry officer because i wanted to be on the change. >> after earning an mba at the university of utah he joined p&g in 1980. he steadily made his way up the 2008. >> now we'll have a chance to introduce our new chief executive -- >> but he abruptly resigned in 2013. investors were afraid he was not doing enough to boost the company's performance. the net income has dropped 20%. bill ackman who had a 1% stake in the company lead the charge to oust mcdonald, making his case on cnn last year. >> we have had real concerns
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company. >> as for the prospect of mcdonald heading up the embattled veteran's affair department, there is some concern that he lacks turn around experience, and that p&g's main focus is completely different from an organization in which service is its goal. but otherselieve that he is exactly the leader needed to unroot the sprawling problems of the system. and he will likely have to do some housecleaning. he has experience in this, as he laid off 650 p&g employees during his tenure. if he can succeed, it could be the chance for him to revive the ailing veteran's healthcare system as well as his legacy.
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he would be taking a bit of a salary cut in the new job. he made $15.9 million his last full year at p&g, as the secretary he would be paid just under $200,000. u.s. prosecutors have reached a settlement with the french bank other allegations that they played sanctions against iran and other countries. it also includes clearing transactions on u.s. dollars. the wall street journal reports the bank may have to slash its dividend and raise money to pay the fine. we're hearing details of how general motors plans to compensate victims linked to falsity ignition switches. plus we'll tell you what you need to know if you are borrowing to go to school.
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♪ >> we're following the stories of people who have died in the desert >> the borderland marathon >> no ones prepared for this journey >> experience al jazeera america's critically acclaimed original series from the beginning >> experiencing it has changed me completely >> follow the journey as six americans face the immigration debate up close and personal. >> it's heartbreaking... >> i'm the enemy... >> i'm really pissed off... >> all of these people shouldn't be dead... >> it's insane... >> the borderland marathon only at al jazeera america
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>> add another 8.4 million vehicles to the list of cars general motors has recalled. most of the cars were built between 1997 and 2014 and have ignition key problems. gm says it is aware of at least eight injuries and three deaths linked to the cars in the recall. the auto maker says the cost of recall-related expenses this quarter alone will exceed $1 billion. today's announcement came a few hours after compensation attorney said gm is prepared to pay billions of dollars to victims of crashes caused by faulty ignition switch. he said gm has placed no limit on the total amount he can pay to people or relatives of those killed. and he alone will decide how much they will get even though he is being paid by the company.
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>> gm may -- may say -- that they think we made a mistake. that's fine. but they have to honor it. and they have to pay the claim. and they cannot refuse under the protocol to pay any final determination that we make on the grounds that it's a mistake. we heard you gm. we respect your right to disagree. we have decided it, and that's it. >> he also said gm will not consider the negligence of the driver in any crash, and the company's bankruptcy in 2009 will not be a bar to claims. gm is trying to limit the damage to its image and move beyond the crisis. let's look at the key moments. february 2002 gm approves the faulty ignition switch for installation. then in july 2005, 16-year-old
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amber amber marie rose was killed. april 2006 gm engineer who approved the ignition switch authorizes delfy to redesign it, but doesn't change the part number. december 2013, in coming ceo learns ago the defective switch. the recalculater grows to 2.6 million. last month the u.s. government fined gm $35 million for failing to disclose problems more quickly. heidi more works for the guardian and joins us more for the recall. we just went through the time line and a lot has happened, but a lot is still happening right now. another recall. an additional six recalls this afternoon. when is this part of it going to end? >> we actually have no way of knowing that.
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but it is alarming. if you are a gm customer or consumer, you have to wonder how long gm made these defective vehicles. now it's going back to 1997. suspected. >> what kind of message is this sending to consumers to keep coming out with these. >> i think they are trying to pace it. and some of these have come out on friday afternoons when people are paying less attention. but that is a terrible idea. it tells us the scale is so large that no one could absorb it in one go. even at this moment reporters to put this together, we have to add up what has happened over the last three months to -- add the numbers ourselves to because gm isn't providing that. >> let's talk about this compensation plan for victims. is this a fair way to approach it? this >> it's fair, but a cold fair
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way. there's almost an algorithm. if you spent one night in a hospital you get $20,000. more than 20 nights in a hospital, $500 thousand dollars. if you made $46,000 a year, and loss your life, your family will get something like $4 million. so this isn't really how you want to go about things in this cold algorithmic way. and it will add up to quite a bit, billions and billions. you heard steinberg say, and we have said, there is no cap on it. could it hit their bottom line? >> it definitely will. the cost-benefit analysis is will it hit their bottom line worst than class action suits and other liabilities? and it probably won't. so much of this is based on people having to go to gm to apply for different kinds of damages, and that will take so long, and they are essentially in control. even if ken fineberg is deciding, they are in control.
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and all of that money will go to lawyers not victims. >> obviously gm wants to avoid the threat of a class action threat. you can opt into this, but if you don't take it, you can still go around and sue. will the company's liability just be a mess? >> it depends on how many people are injured. right now gm is saying only 13 people lost their lives. if it is more than that, class action suit could be a real real problem. but if it's only 13 people, it's more likely that more people will want to get the payout, it's much easier than taking on some of the highest-paid lawyers in the nation in court. >> let's talk about bp and ken fineberg. ken fineberg seems like a pretty good pr move for gm. that being said the bp oil spill
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has had some criticism. so what has he learned from that? >> people who aren't involved in the corporate world -- certainly the fishermen, and in this case, consumers who bought cars, they are not very savvy about bureaucracies, and it's very easy to leave them out in the cold. and if he pays more attention to the level of education that is getting out there, it will go well, but if, like, bp, it's kind of just assumed that people are going to know how to apply to a giant corporation to get damages, it will fill again. >> all right. heidi thank you so much. >> thank you. if you are having trouble paying your student loans, there are options that your lender may not have told you about. plus what is putting this valley
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on the map long before the famous music festival came along. ♪ >> khaled hosseini author of the best selling novel "the kite runner" talks about his hopes for his homeland. >> no change will come to afghanistan unless it's initiated by the afghan's themselves... >> and the inspiration for his latest novel. >> the idea for the book came from painful acts of sacrifice. >> every saturday join us for exclusive, revealing, and surprising talks with the most interesting people of our time. >> talk to al jazeera only on al jazeera america
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the stream is uniquely interactive television. in fact, we depend on you, your ideas, your concerns. >> all these folks are making a whole lot of money. >> you are one of the voices of this show. >> i think you've offended everyone with that kathy. >> hold on, there's some room to offend people, i'm here.
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>> we have a right to know what's in our food and monsanto do not have the right to hide it from us. >> so join the conversation and make it your own. >> watch the stream. >> and join the conversation online @ajamstream. >> hundreds of days in detention. >> al jazeera rejects all the charges and demands immediate release. >> thousands calling for their freedom. >> it's a clear violation of their human rights. >> we have strongly urged the government to release those journalists. >> journalism is not a crime. >> as if college students don't have enough debt, starting tomorrow interest rates go up on new federal loans. the change stems from a deal brought in last year by congress and the president that ties the rates to the financial markets. and the rates could go even higher down the road. congress stipulated that the
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rates for new loans be reset annually, meaning they will go up as the economy improves. student debt in the united states now tops a trillion dollars. and if you think that's disturbing, consider this. as of march 31st, nearly 11% of student loan debt was 90 days delinquent or in default. that's the worst default rate for all household debt, including credit cards and mortgages. defaults on student loans can devastate a borrowers future access to credit and arm their job prospects. but not everyone is aware of the dangers or how to avoid it. >> this is good. >> 34-year-old student loan literacy activist, working the room at her alumni luncheon . she just graduated with $26,000 in student loans.
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a bill she didn't fully anticipate when she originally took them out. >> i didn't really understand that while i was still taking classes that i was being charged interest on loans; that the loans were due basically out. >> nor did she know how defaulting on those loans would affect her future career. >> if you default and you are trying to go to graduate school, that could mean you have no access anymore. >> the dangers of defaulting on student loans are poorly understood. a recently survey sound only 28% of respondents realize that failure to repay can result in poor credit, garnishment of wages and withholding of tax refund and social security.
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and student debt is nearly impossible to discharge through bankruptcy. he is encouraging her fellow alums to sign up for income-based repayments. the government program that allows federal student loan borrowers to cap their payment at 10%, and avoid a costly default. >> understanding the consequences of failing to pay back your student loan on time is a good start. but borrowers also need to be aware of the programs that keep them from falling into trouble. >> there are over 7 million americans in default on a student loan, and it is very troubling that most of them could have avoided that. >> this is student loan ombudsmen which oversees student
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loan servicers. >> we don't know how many people are getting incorrect information from their servicers. but the cfpb does receive thousands of complaints. >> you can go online to www.white -- >> in the meantime, she is giving talks with the goal of november. >> don't trust your servicers, trust those who are doing the work around student debt, continue to stay connected to get the best information available to you. >> patricia sabga, al jazeera, new york. in that niece you just heard from the consumer financial protection bureau, and he joins me now to discuss the implications of growing student debt and possible solutions. thanks for coming in. >> thank you.
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>> are you surprised ever by how many of these people don't realize the dangers of defaulting on student loans? >> sometimes you know there are options out there for you, but you just have a tough time navigating through all of the red tape, and it be -- reminds us of some of the worst practices that happened in the foreclosure process. people just found themselves going back and forth with their loan company trying to get the paperwork right. that? >> for most borrowers they have federal student loans, and they are programs that are fairly easy to enroll in. you can sign up, often for pay as you earn. this will lower your payment as -- considerably often just as an affordable part of your income. this frees up cash to save for retirement, save for a down payment and get ahead in life,
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rather than feel pushed down by your student loan. >> before we watched that piece, we were talking about this new increase that is coming up. so let's say for every 10,000 in student loans, new borrowers have to pay around $4 extra a month. that doesn't sound like a lot. but if things keep going up, could this become a problem? >> that's right. the interest rate increase only affects new students. >> correct. >> but you are right, though, it does sound like a small increase, but people end up borrowing substantially sums of money, and in some cases they stretch out those payments over more than ten years and it can really add up. people have actions, but i think we really need to think about some of those core drivers of the student debt in the first place. and the cost of college keeps increasing way past the rate of inflation. and it is just not
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sustainable. >> is taking out loans just a fact of going to college? >> it's actually sort of unfortunate, and a bit tragic that now student loans are no longer the exception, they are really the norm. >> what is the percentage? this >> about 70% of borrowers need to take out debt to go to a four-year college. and of those who borrow, they graduate with around $29,400 and it can be much higher for those can graduate degrees. >> and what is the grag on the overall economy? >> it's hard to say exactly, but a lot of those borrowers who should be in the prime home-buying age, are finding it harder to save for a down payment or qualify for a mortgage. and it may have a broader impact on all of us. there is evidence to suggest it slows down small business
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creation, and impact the ability of teachers and primary care doctors, making certain situations even worse. >> household formation we're already seeing that in some of the debt out there. thank you so much for coming in. all right. the supreme court handed down decisions today, involving obamacare and unions. plus the baggage crack down at the airport, why mere fractions of an inch could cost you. ♪ >> now inroducing, the new al jazeea america mobile news app. get our exclusive in depth, reporting when you want it. a global perspective wherever you are. the major headlines in context. mashable says... you'll never miss the latest news >> they will continue looking for suvivors...
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>> the potential for energy production is huge... >> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now s, is what we do.
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>> al jazeera america.hat we do. >> the u.s. supreme court today said private companies do not have to provide health insurance
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that covers birth control if it violates the religious belief of the owners. the case came involving the company hobby lob by. it was a blow to the health care act. the court rules applies only to so-called closely held companies owned by a small number of individuals. and in the decision written by just advertise samuel alito, home health-care workers in illinois who are paid by the state don't have to pay dues to a public sector union. in this situation, what they also said is that the court [ technical difficulties ] violated the first amendment rights. but upheld
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an early er decision. [ technical difficulties ] tech >> and joins us thanks for coming. >> thank you. >> so let's start off with -- [ technical difficulties ]
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[ technical difficulties ] >> but that's not what held. so it was a narrow decision in that the court stated that where you have employees who are employed by the state, as these home health-care workers, but who are also employed by the private consumer in the homes that they are taking care of, where you have as the court said sort of partial public employees. in that instance if you are not a member of the union, you cannot be compelled to pay the union dues. >> okay. i do want to get to the hobby lobby case. how much of a blow do you think this is to the administration? >> well, it certainly is a big blow, i think. in this instance, we have closely-held corporations at issue.
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this is not a situation of publicly traded corporations. it is corporations that are basically owned by a family, where the family says we're very religious, so we do not want to pay for certain types of contraceptives that we believe are against our religious beliefs. so, again, the court made a decision that was against certain types of -- of rights, particularly very important rights for women here to get -- have free access to contraception under healthcare plans, under the affordable care act. so it's a real blow to the women and the administration. >> okay. so we're going to have to get you back to answer more questions at another time. thanks so much. so dates are one of the world's
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oldest cultivated crops. there are trees that have been cultivated for over 5,000. the first dates arrived in america a little over a century ago, and have grown into a $50 million a year business here. coachowa valley is known as the date capitol of the u.s. it and some parts of arizona were chosen as ideal areas to grow dates because of their air rid temperatures. we have part owner of dream date farm, and doug joins us now.
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>> these are dates that are growing right now, and they are still green, but it does show you how they grow on these strands. but these would not be ripe until about september or october, and i also have a bunch from last year -- >> because there are a lot of different kinds of dates, right? >> and these have dried out more. but they were originally from ta knee sha, and they would be dry enough to put on the back of the camel and go across thedesert. but it's a drier date, a chewier date. >> those are more like the dates we got at the deli out here. it's a pretty labor intensive thing growing these dates, right? and there's this whole thing about pollination, which i'm curious about.
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>> dates go on male and female palms. they need pollen from the male palm to turn into a fully ripe date. so each flower has to be hand-pollinated. so it's very labor intensive. the worker goes up a ladder and pollinates each flower by hand. there are pictures in the egyptian pyramids of workers pollinating the female palms. so it's a knowledge that goes back, well, maybe to the garden of eden. >> that would be a long time. your biggest holidays are rom
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da, and the chinese new year is that right? >> harvest began in september, and when romdon started, but now it's coming so early that we don't have any new crop. but the larger date growers will have a carrier over from last year. ages. >> but you are already sold out from last year's harvest is that right? >> that's right. we're a very small farmer. so we sell out usually in march or april, but the bigger growers will still have plenty of crop -- left-over crop. >> all right. doug, fascinating and very interesting to actually see some of the dates in progress there. all right. well be ware the baggage police. if you are flying this summer, it could cost you, and what you
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need to know before you get to the airport, coming up. plus the gadget launched seven years ago this week, that proved to be a game changer. ♪ >> this saturday. >> i know that i'm being surveilled. >> freedom at risk. >> your agency deceived the american people. >> tracking every move. >> the nsa's actually doing this on a universal scale. >> could you be next? >> if helping kids with their homework is terrorism activity, then... i guess so. >> faultlines. al jazeera america's hard hitting, >> they're blocking the door... >> groundbreaking, >> we have to get out of here... >> truth seeking, award winning, investigative documentary series: "collect it all". saturday, 7 eastern. only on al jazeera america.
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>> consider this: the news of the day plus so much more. >> we begin with the growing controversy. >> answers to the questions no one else will ask. >> why did so many of these people choose to risk their lives? >> antonio mora, award winning and hard hitting. >> people are dying because of this policy... >> there's no status quo, just the bottom line. >> but what is the administration doing behind the scenes? >> real perspective, consider this on al jazeera america
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>> it is said that everything old is new again. an airline launching today is putting that adage to the test. it calls itself people express, if that sounds familiar, it is. that's the same name of a low f-budget carrier that made a flash in the 1980s, before failing. industry watch ers says the name itself is just one headwind that people express faces. >> a bar done like this only comes along ten times a day. >> that was the 1980s when people express blazed a trail as a low-budget no frills airline. it grew to become the 5th largest carrier before heavy losses grounded it for good. a new airline is reviving the
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name, offering one-way tickets starting at $76. >> based on the original people's express, which had a history of being a low-cost airline, but added to that a culture of good customer service, we're trying to later. >> it is banking on smaller markets it says is ignored. it chose new port, virginia, as its hub. people express's first flights from new port news will fly to newark, boston and pittsburgh. four southern cities plan to be added this summer. while the airline may offer cheap tickets everything beyond the eat is odded on the. unlike the '80s when people express broke new ground, today
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it has plenty of competition. allegiant, frontier, and spirit offer low-cost service, and then there are larger carriers, like jet blue and southwest doing the same. and if people express is counting on nostalgia to standout, one analyst says that could backfire. >> people express died a really ugly death. bringing back the name now i think means nothing. there will be some people who remember it. there's no guarantee they have fongd memories. >> the head of the new airline vows not to repeat history. >> they kind of tripped over their own ego. we're not going to do that. >> what they are doing is relying on a third-party. vision airlines will operate flights, and that, say analysts, is another risk. people express says it will rely on vision until it gets its own certification.
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a move that could take at least a year. in that time fliers will be deciding whether people express is a new airline to fly. another group is working to relaunch eastern airlines. one of the country's major carriers before going out of business in 1991. whether flying people express or one of the big three this summer, watch out the bag police are outin force. here with more on the bottle of the bags is the founder of airfarewatc george this is my bag that has gone with me on countless trips. and two weeks ago in las vegas trying to get on to a united flight, it doesn't fit in think thing anymore. what is going on?
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>> well, jenny, airlines are cracking down on carry on bags like never before, and when i say cracking down, they are cracking down to the inch. it used to be 45 linear inches, and they didn't tell if you had a 20 by 15 by say 10. now they do. i had a similar thing happen to me at jfk. i have a bag, and everyone says that is such a small bag. and it was rejected at the tsa line. it was sticks out in one dimension by one inch. and i had to go back to check it in and almost missed my flight. >> i feel your pain. and i know there are other people out there from reading the frequent flier sites. so why are the airlines doing this?
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it seems like they are making some of their most loyal customers mad. >> i think in american's case they are merging, and the faa is making sure that they follow their own rules, so whenever two airlines merge, they file a joint operating certification. but in delta's case it think it's really because it's the summer travel season, and the overhead bins are full, the flights are full, and there's not enough room. they used to gate check you. but now there are tsa checking you. and you have to go back to check in. and the crime is a lot of these b bags that have been sold as carry on compliant are no longer carry on compliant. so you have to make sure that your dimensions at least on
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delta, american, and united are compliant. it can't be 10 on one side, it has to be 9. it can't be 15 it has to be 14. >> it's not just the airlines that are going after people. there is a twitter campaign that has been posting pictures of people with too many bags. what do you think of that? >> well, obviously -- [ technical difficulties ] on board, and it's very selfish, and i don't condone people bring large bags, but the question is, if your bag is really small, but it's just not compliant in one dimension, is that really fair to make you go back to the check-in line. so people do have to bring out their tape measure. they could miss their flight. but a few airlines have larger dimensions, southwest, and
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virgin, for example, have larger dimensions. i think you can do like 23 by 15 or 16 by 10. so you might want to fly those airlines. southwest, virgin, even alaska and frontier have larger overhead bins. >> mary snow's piece on people's express. what do you think about that dead? >> all of these niche carriers unfortunately never do well. but airfares have gone up quite a bit, and we need more competition, but usually it is not a pretty scene. norwegian is now flying to the u.s. from scandinavia, and they are also giving some of the majors some heart ache with very low fairs. >> heart ache for them, but consumers tend to like it. george thank you so much.
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>> seven years ago this week, the iphone went on sale, forever changes the relationship people have with their hand-held devices. for better or worse it ushered in an area that made the smartphone a prized possession that people rely on. the phone introduced by steve jobs in 2007 was the new kid on a block dominated by blackberry and nokia, the iphone had a cool touch screen. time magazine named it the invention of the year. the fever gained force after apple created the first app store in 2008. but you could only take pictures on grainy 2 mega pixel camera. remember that. but still, the world fell in love with the idea of an all in
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one phone and soon other companies were creating their own devices and mobile operating systems. the apple iphone remained the star selling more than 500 million units since 2007. but lately the iphone's grip on the market share has taken a bit of a hit android make up almost 80% of the market now. and samsung is giving apple a run for its money. but the iphone still generates plenty of excitement. and for that we say, happy birthday, iphone. that's it "real money." i'm jen rogers in for ali velshi. thanks for joining us. ♪
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the discovery of the bodies of three missing settlers in the west bank. the teenagers vanished while hitch hicking more than three weeks ago. >> welcome to al jazeera live. also coming up on the programme - will he be turkey's nest president. turkey's prime minister looks certain to be nominated as the ruling party's candidate in the top